International Trade Under Depreciated Paper. A Contribution to Theory

Abstract

I. An assumed case of large foreign borrowing by a paper money country, 381. — Consequences on the rates of foreign exchange, 382. — A digression: present conditions in Germany and Europe abnormal, and little pertinent to this discussion, 384. — Effects under ordinary conditions on the prices of exported and imported goods, 386. — A transition stage; is there a bounty on exports? 388. — II. Ultimate effects, as they would be if both countries were on the gold basis, 391. — In what way, in such case, international lending may lead directly to increased exports of merchandise, 392. — But increased exports are usually the indirect consequence of gold movements, 394. — Resulting changes in relative wages and prices, 395. — No such mechanism, however, in case of depreciated paper, 396. — An analogous result, yet a different one, through the movement of goods, 397. — III. Difficulty of verifying this analysis through inductive inquiry, 400. — Partial verification of a confirmatory character not impossible, 402.